5 Reasons why mobile wallets are better than cash transactions

The mobile wallet market share in Indian has grown manifold over the past couple of years. Not only does it offer freedom from cash transactions but it allows users to enjoy better discounts and cashback promos on a regular basis. This post will analyse the benefits of mobile payments in India.

Demonetisation was an unexpected and somewhat troublesome experience for the general public. Everyone could remember the long queues in front of banks and the struggle to get cash for daily expenses. However, it is important to give due credit to some of the unexpected benefits of demonetisation. The mobile payments segment has witnessed a multifold growth since demonetisation. Unlike the pre-2016 period, mobile payments in India are a common phenomenon. We can witness tea stalls, vegetable vendors, and even milk outlets accepting payments through mobile wallets.

Source: https://pixabay.com/illustrations/visa-business-buying-card-3082813/

Growth of e Wallets in India

In fact, research indicates that more than 73.9 million Indians (approximately 22% of the total smartphone users of the country) used mobile payments in 2018. This number is expected to reach 93.9 million in 2019. A recent survey indicates that Indian users are adopting mobile wallet transactions even fast than their American or British counterparts.

Why Mobile Wallet Transactions Outweigh their Cash Counterpart

Here's a list some of the top benefits of mobile wallets for regular users-
Ease of Use: One of the primary reasons why the use of e Wallets in India has skyrocketed is its ease of use. All you need to do is to install a mobile wallet application, fund it with your debit card, and you're ready to make mobile payments at every avenue. You do not need to look for loose change or carry a huge amount of cash in your wallet.

Promotional Offers: In addition to demonetisation, we have to give credit to the mobile wallet companies for massive adoption in a short period of time. Companies like PayTM and Phonepe run extensive offers for their users. For instance, people in Delhi NCR receive a cashback of up to INR. 10 for a transaction above INR. 20 at dairy outlets. Most of the mobile wallets run cashback offers for mobile payments, utility bills, travel booking, and even shopping.

Easy Expense Tracking: Having a financial budget is critical for every individual as well as household. Mobile wallets offer an easy record of all the transactions done by a user at the end of the month. Furthermore, users can track their expenses on a weekly or even daily basis. You don't need to maintain a diary or install other applications to track your expenses.

Lower Risk of Theft: Unlike cash, you don't need a physical wallet or envelope to carry digital cash. All you need is your smartphone, and you're ready to transact everywhere. This is an advantage for people who often go on trips or have a travelling job.

Limited Dependence on Banks: If recalling your demonetisation experience still gives you chills at times, mobile wallets are the ideal choice for you. Mobile payments have reduced dependence on financial institutions and banks for cash or other monetary transactions. Most of the mobile wallets offer direct peer-to-peer bank transfers and even facilities like a savings account.

Risks Associated with the Use of e Wallets in India

Growing Incidents of Online Fraud: With the growth of e wallets in India, incidents of online fraud are on the rise. People are often duped of their login credentials through fraudulent calls or phishing emails.

Risks Arising from Data Theft: As the total number of mobile wallet users in India are rising, Indian customers have become more susceptible to data theft. Data theft events involve the use of illicit measures for obtaining personal/financial information of a user without his awareness or willingness.

Advice for Mobile Wallet Users

All the users transacting with mobile wallets must practice caution when sharing their QR codes or other details. They should never disclose their login details to anyone. Additionally, mobile wallet users must be vigilant against fraud calls. It is important to understand that you can safeguard your digital identity by practicing basic security measures.


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